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Bank Performance Rating (Stability assessment)

The Think Business Bank Performance Rating [BPR] is designed to be a simple yet credible measure of how stable a bank is. Our rating adopts 12 key stability indicators which essentially, are the standard measures used globally by rating agencies to rate banks. We have focused on the following key measures, which we have explained further below:

1. Asset Quality

  • Loan loss provisions to Operating Income
  • Gross NPL to Total Loans

2. Capital Adequacy

  • Core Capital to Total Deposits
  • Core Capital to Total Risk Weighted Assets
  • Total Capital to Total Risk Weighted Assets

3. Earnings

  • Return on Average Assets (ROAA)
  • Return on Average Core Capital 
  • Average Funding Cost
  • Efficiency Ratio

4. Liquidity

  • Quick Assets to Total Liabilities 
  • Quick Assets to Total Deposits

Rating Methodology

Assessment scores are assigned to each bank on each of the 12 parameters on the basis of grading benchmarked globally acknowledged optimal levels, industry averages or statutory CBK requirements, or all.

Depending on their individual scores, the banks have been graded as follows:

GradingRatingScore

Very Good

A5
GoodB4

Satisfactory/Average

C3
Below AverageD2
PoorE1
Very PoorF0

The grading for each bank in each of the parameters is summed up and averaged. This average becomes the overall rating of the bank for the year. Our overall rating of each bank and the industry follows the same scoring above.

We have adopted a double alphabetical rating style, with each rating referring to a specific year. For example, an AA rating implies a rating The grading for each bank in each of the parameters is summed up and averaged. This average becomes the overall rating of the bank for the year.. AA is the highest rating possible while FF is the lowest.